Saudi End of Service Calculator
Estimate the end-of-service award (EOSB) under the Saudi Labor Law for termination or resignation.
- Total service
- 6.00 years
- Full award (art. 84)
- SAR 35,000.00
- Share payable
- 100%
- End-of-service award
- SAR 35,000.00
Wage means the last actual wage including regular allowances as defined in the Labor Law. Special cases (e.g. resignation for force majeure or by female employees after marriage or childbirth) can qualify for the full award.
The rules in short
| Service | Contract ended / terminated | Employee resigned |
|---|---|---|
| Under 2 years | ½ month per year | Nothing |
| 2 – 5 years | ½ month per year | ⅓ of the award |
| 5 – 10 years | ½ month for first 5 years + 1 month per year after | ⅔ of the award |
| 10 years and more | Same formula | Full award |
Worked example
Last wage SAR 10,000, service 6 years, contract ended: 5 × 5,000 + 1 × 10,000 = SAR 35,000. If the employee resigned instead: ⅔ × 35,000 = SAR 23,333.33.
Frequently asked questions
How is end-of-service benefit calculated in Saudi Arabia?
Under article 84 of the Labor Law, the employee receives half a month's wage for each of the first five years of service and one month's wage for each year after that, with partial years counted proportionally.
What if the employee resigns?
Under article 85, a resigning employee receives nothing with less than two years of service, one third of the award for two to five years, two thirds for five to ten years, and the full award after ten years.
Which wage is used?
The last wage, which under the Labor Law includes the basic wage and regular allowances such as housing, unless the contract or company policy defines otherwise in the employee's favour.
Are there exceptions for resignation?
Yes. Article 87 gives the full award in cases such as force majeure, and to female employees who resign within certain periods after marriage or childbirth.
Related
For guidance only. Confirm with the Saudi Labor Law, the Ministry of Human Resources (hrsd.gov.sa) or a legal adviser.